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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Asia Morning Nov 17

Article By: ,  Financial Analyst
November 16, 2020 8:15 PM

Asia Morning: Dow, S&P500 at Record Levels

On Monday, U.S. stocks maintained upward momentum pushing the Dow Jones Industrial Average (+470 points or 1.60% to 29950) and the S&P 500 (+41 points or 1.16% to 3626) to record levels. The Nasdaq 100 rose 75 points (+0.63%) to 12013.

At the same time, the Russell 2000 Index (+41 points or 2.37% to 1785) also closed at record high.


S&P 500 Index (Daily Chart) : Fresh Record High

Sources: GAIN Capital, TradingView


The key market driver was Moderna's (MRNA +9.58%) announcement of positive trial results of its COVID-19 vaccine.

Energy (+6.5%), Automobiles & Components (+3.01%) and Banks (+2.95%) sectors performed the best. Energy companies such as Schlumberger (SLB +10.89%), National Oilwell Varco (NOV +9.38%) and HollyFrontier (HFC +9.24%) were top gainers along with a 3% gain in as oil prices.

Approximately 87% (82% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 86% (80% in the prior session) were trading above their 20-day moving average.

In after-market hours, Tesla (TSLA) soared over 10% after S&P Dow Jones Indices announced that the stock will join the S&P 500 Index in December.

European stocks were broadly higher. The Stoxx Europe 600 rose 1.18%, Germany's DAX added 0.47%, France's CAC 40 jumped 1.70%, and the U.K.'s FTSE 100 was up 1.66%.

U.S. Treasury prices remained under pressure, as the benchmark 10-year Treasury yield climbed further to 0.904% from 0.893% Friday.

Spot gold edged up to $1,889 an ounce.

Oil prices jumped as economic recovery hopes were boosted by positive news concerning Moderna's vaccine candidate. U.S. WTI crude futures (December) jumped $1.27 (+3.16%) to $41.4 a barrel.

The U.S. dollar kept weakening against other major currencies as investors' risk appetite was enlarged by another positive development on a COVID-19 vaccine. The ICE Dollar Index slipped 0.17% to 92.55.

EUR/USD was up for a third session rising 0.15% to 1.1851.

USD/JPY edged down to 104.58, testing support at its 20-day moving average. Official data showed that Japan's 3Q GDP rose at an annualized rate of 21.4% on quarter (+18.9% expected).

GBP/USD closed flat at 1.3197.

Commodity-related currencies strengthened against the greenback. AUD/USD jumped 0.69% to 0.7320, up for a second session. 

USD/CAD slid 0.48% to 1.3074.

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